Lesson Notes By Weeks and Term - Senior Secondary School 2

Browse through topics for Senior Secondary 2 1st, 2nd and 3rd Terms, All Weeks, All Subjects

Term: 3rd Term

Week: 3

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each


Subject:    Commerce

Topic:-      Nigeria Capital Market

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Narrate a brief history of the Nigeria Capital market
  2. State the functions of the capital market

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures








The teacher reviews the previous lesson on warehousing

Students pay attention



She narrates a brief history of the Nigeria Capital market


Students pay attention and participates



She explains the functions of the Capital market


Students pay attention and participate



The teacher writes a summarized note on the board

The students copy the note in their books




The Nigerian capital market was born in 1946 with issuance of Nigerian first development loan stock and it achieved maturity with the establishment of the Lagos stock exchange in 1960 in order to mobilize fund for  economy development ,a capital issuance committee was established in 1962 and upgraded to capital issuance commission in 1979 when the security and exchange commission (SEC) promulgated .With the success so far achieved and the need to expand capital market further ,the second Tier security market (SSM) was established in 1985 .The decree was re-enacted in 1988 as security and exchange commission decree number 29 so as to make provision for developing the capital market and also for potential investors .

The stock exchange decree of 1988 was replaced with the investment security act (ISA) no.45 of 1999 to provide a more effective and valuable capital market .The SEC decree of 1988 was replaced with investment security act(ISA) no.45 of 1999 to provide effective and valuable capital market that could meet economic Nigerian needs better .The ISA for 1999  re -established the securities and exchange commission (SEC) as body corporate with perpetual successor with common seal that can sue and be sued in it corporate name

The Nigerian Stock Exchange (NSE) now Nigerian Exchange Group was founded in 1960 as the Lagos Stock Exchange, on September 15, 1960. Operations began officially on August 25, 1961 with 19 securities listed for trading but informal operations had commenced earlier in June, 1961.

From the early beginnings when only 19 securities were listed for trading to the now demutualised market, and over 300 securities composed of stocks, bonds, and Exchange Traded Funds (ETF) worth about N49.6 trillion in overall market capitalisation combined, Nigerian Exchange group Plc (NGX Group) has transformed to Africa’s gateway market, connecting Nigeria, Africa, to the world. 

NGX Group has evolved in line with Nigeria’s independence, as operations on the then NSE were initially conducted inside the Central Bank building with firms as market dealers: John Holt Plc, C.T. Bowring, and ICON (Investment Company of Nigeria).

The volume for August 1961, was about 80,500 pounds and it rose to about 250,000 pounds in September of the same year with the bulk of investments made in government securities. In December 1977, it became known as The Nigerian Stock Exchange (NSE).

The NSE converted to an Automated Trading System (ATS) in April 27, 1999, with dealers trading through a computer network. In 2013, it launched its next-generation trading platform, X-Gen, that enabled electronic trading for the retail and institutional segments.

The NSE officially transitioned into a demutualised entity in March 2021 and transitioned to a non-operating holding company, Nigerian Exchange Group Plc, with three subsidiary businesses, the Nigerian Exchange Limited (NGX), NGX Regulation Limited (NGX RegCo) and NGX Real Estate Limited (NGX RelCo) after the approval of the Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC).



  1. It helps to provide long-term loans to members
  2. it allows the general public to participate in the running of the economy
  3. it enhances the growth and development of merchant banks
  4. it helps to gather savings for investment purposes


EVALUATION:   1. Narrate a brief history of the Nigeria Capital market

  1. State the functions of the capital market

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively